Errors in Construction Industry cost 20–30% of Contract Value

If you are an owner, you are paying for it, one way or another.

The Get it Right Initiative (GIRI) was launched in the UK to help firms avoid construction errors which cost Owners (and taxpayers) as much as £21bn each year in the £100bn a year construction industry — so about 21%.

Published research shows that between 10% and 25% of project costs are lost through errors. This includes direct and indirect costs plus unmeasured costs.

The initiative, which is supported by the Institution of Civil Engineers, is funded through members including Costain, Bam, Taylor Woodrow, and Skanska.

Many of the error costs were invisible because they’re buried in marked-up rates.

The companies have started sharing their experiences of errors, so they could learn from them. The initiative’s research suggests that many errors are rooted in the planning process, not the construction phase — late design changes, poor communication, and lack of coordination.

Productivity in the construction industry has barely increased in the last 20 years. As a consequence, projects cost more, which means we are building fewer projects, and as a society, we can’t afford them.

Productivity over 20 years: reduced.

Project costs by any metric: increased.

Total number of major projects: fewer.

Affordability of projects: decreased.

Can you afford to take on this kind of project risk? Can society continue absorbing the risks of modern financing models? Can modern construction methodology continue to be deployed when it is clearly less efficient?

Likely, “No”! so get some engineering done early and done properly: ArchEngineers

Precis from here: link